HomeMy WebLinkAbout03-16-2010 Council Economic Development Committee
AGENDA
City of Iowa City
City Council Economic Development Committee
Tuesday, March 16, 2010
8:00 a.m.
Lobby Conference Room
City Hall
1. Call to Order
2. Consider approval of the March 2,2010 Economic Development
Committee meeting minutes
3. Consideration of Moss Green Urban Village Urban Renewal Plan,
approximately 243 acres, north of I -80 and west of Highway 1
4. Committee time
5. Staff time
6. Adjournment
DRAFT
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
MARCH 2, 2010
LOBBY CONFERENCE ROOM, 6:15 P.M.
Members Present:
Staff Present:
Others Present:
Regenia Bailey, Matt Hayek, Susan Mims
Wendy Ford, Jeff Davidson
Gig Wood
RECOMMENDATIONS TO COUNCIL:
Mims moved to accept the staff recommendations for the Pepperwood Plaza TIF
project as discussed.
Hayek seconded the motion.
Motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Bailey at 6:15 P.M.
CONSIDER APPROVAL OF THE MINUTES OF THE JANUARY 20.2010. ECONOMIC
DEVELOPMENT COMMITTEE MEETING:
Mims moved to accept the January 20, 2010, meeting minutes as submitted.
Hayek seconded the motion.
Motion carried 3-0.
CONSIDER APPROVAL OF AN EXTERIOR BUILDING CHANGE IN THE
PEPPERWOOD PLAZA TIF PROJECT:
Ford addressed the Members regarding this project, noting that they have a memo from
her in their packets. She gave a brief history on this project, sharing why they are
bringing this item forward at this time. Sears Holdings, which owns the K-Mart building
in the Pepperwood Plaza, is seeking to make changes to the building in order to
construct a laundromat on this site. Staff in the HIS department has reviewed these
plans, and according to Ford, believe most everything is approvable.
Staff recommends approval of the exterior design, as shown on the drawing labeled
"Proposed new Channel Letters & New Awnings" with one exception: that the channel
letter K-Mart logo sign be moved over the bay of windows containing the new front door,
instead of where it is shown on the plain brick faced wall to the right. After a brief
discussion of related code requirements, Members agreed with staff recommendations.
Mims moved to accept the staff recommendations for the Pepperwood Plaza TIF
project as discussed.
1
Economic Development Committee Meeting
March 2, 2010
Hayek seconded the motion.
Motion carried 3-0.
COMMITTEE TIME:
Mims noted that she is glad to hear that things are moving along well with the Moss
Green project. Davidson noted that they have some updates on this that they will share
under staff time. Hayek added that they had a good meeting with P&G last week - he,
Davidson, Ford, and Helling. He added that P&G expressed concerns about their tax
burden and how lean of an operation they have to run in order to remain competitive in
their industry. Davidson commented on some of the specifics of the P&G plant and
some of their prospective plans for production.
STAFF TIME:
Ford asked if Members would be able to attend the March 16 regularly scheduled
Economic Development Committee meeting as there could be a need to get the Urban
Renewal Plan underway for the Moss Green project, and the Committee's approval
would be needed. She explained the timeline they are looking at for that week.
Members discussed their schedules briefly, and Bailey asked that they bring their
calendars to the next meeting so they can firm up some dates.
Davidson suggested the Committee meet in the evenings, prior to Council meetings, if
this would work better for Members. Davidson then spoke briefly about the Moss Green
project, noting that they had a meeting recently where they refined the schedule to
proceed. He stated that the applicant now has a clearer understanding of the City's
expectations, and the City now has a ~chedule to work from.
Davidson also noted the City's new parking structure project and the interest they have
seen in this. He also noted that the Towncrest redevelopment is progressing. That
group met this morning to discuss things. The industrial park platting, according to
Davidson, is occurring, as well. Also moving along is the Downtown Business Incubator
project. Davidson stated that they are about a third of the way through this project. The
Riverfront Crossings project grant, according to Davidson, will allow them to obtain some
more consultant services there.
ADJOURNMENT:
Hayek moved to adjourn the meeting at 6:34 p.m.
Mims seconded the motion.
Motion carried 3-0.
Economic Development Committee Meeting
March 2, 2010
Council Economic Development Committee
ATTENDANCE RECORD
2010
TERM ...... w w
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Regenia 01/02/11 X X
Bailey
Matt 01/02/11 X X
Hayek
Susan 01/02/11 X X
Mims
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X = Present
o = Absent
OlE = AbsenVExcused
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CITY OF IOWA CITY
MEMORANDUM
Date:
March 12, 2010
From:
Economic Development Committee
Wendy Ford, Economic Development Coordinator
Proposed Moss Green Urban Village Urban Renewal Area
To:
Re:
Presented for the Economic Development Committee review is the proposed Moss Green
Urban Village Urban Renewal Plan. The plan is proposed for the purpose of and the
prerequisite to establishing a tax increment financing district to finance projects within the urban
renewal area. State Code requires that prior to the City council holding a public hearing on the
urban renewal plan; the Planning and Zoning Commission review and submit a written
recommendation to the City Council regarding the urban renewal plan's conformity with the Iowa
City Comprehensive Plan. While it is not required by state law, Iowa City practice is to include
the Economic Development Committee in the review process as well.
Conformity with the Comprehensive Plan
Economic goals outlined in the comprehensive plan are:
. Diversify and increase the property tax base by 1) encouraging the retention and expansion
of existing industry and 2) attracting industries that have growth potential and are compatible
with existing businesses;
. Increase employment opportunities consistent with the available labor force;
. Provide and protect areas suitable for future industrial and commercial development;
. Cooperate with local and regional organizations to promote economic development within
Iowa City;
. Improve the environmental and economic health of the community through the efficient use
of resources; and
. Consider financial incentives and programs to facilitate achieving the above goals.
The proposed urban renewal project area is near the interchange of Interstate 80 and Highway
One. The Iowa City Comprehensive Plan states that this area...
.. . provides one of the few opportunities for office research park development in Iowa
City. National Computer Systems (now Pearson, within the North Corridor Planning
District) and ACT (south of 1-80 in the North Corridor Planning District) are successful
examples of this type of development. With the tone set by these two companies and the
advantages of interstate exposure, land around this interchange should continue to be
preserved for office research park and research development park opportunities.
The designation of the urban renewal project area for office, research, production and/or
assembly uses is consistent with the Iowa City Comprehensive Plan.
Tax increment financing
For the Committee's information, the following explains how tax increment financing (TIF) will be
used in the Moss Green Urban Village Urban Renewal Area.
TIF is a mechanism used to finance projects within a designated urban renewal area. The
difference between taxes derived from unimproved and underdeveloped property and those
derived after its development is the "increment" of taxes which may be pledged by a city to retire
March 12,2010
Page 2
loans, advances, bonds, or other indebtedness incurred by a city or the developer in furtherance
of the development. The TIF ordinance makes available to the city all the incremental tax
revenues for repayment of project related expenses. The incremental tax revenues include
those levied by and for other taxing jurisdictions, such as the county, school district, and
community college.
Chapter 403 of the Code of Iowa sets forth the provision of tax increment financing. To establish
a TIF program, a city must first prepare an urban renewal plan for a specific urban renewal area.
A city may designate an urban renewal area as either a "blighted," "slum," or "economic
development" area, each of which s defined in Chapter 403. In this instance, the urban renewal
area is designated an economic development area, which is defined as "an area of municipality
designed by the local governing body as appropriate for commercial and industrial enterprises."
The City's stated objectives for the urban renewal area are outlined in the urban renewal plan.
The urban renewal plan also explains why it is in the City's interest to establish this urban
renewal area. Communities are more and more called upon to make financial incentives and
program available to make a development site and the area attractive to potential new
businesses and business expansions. Other development sites in the area, which also target
office research park uses, make tax increment financing available to businesses that are looking
at those development sites. To assist with ensuring that this type of Iowa City development is
competitive, the City would make TIF available in the Moss Green Urban Village.
The next steps in the process are that he Economic Development Committee and the Planning
and Zoning Commission make recommendations to the Council and the City will hold a
consultation with representatives from the county, school district, and community college, in
order to provide these taxing entities with an opportunity to comment on the use of the
incremental tax revenues.
After the public hearing and the consultation with the affected taxing entities, the City Council
may concurrently consider adoption of the urban renewal plan, the TIF ordinance and a
developer's agreement. The TIF ordinance establishes the mechanism for separating the
incremental tax revenues from the base tax revenues. The developer's agreement will outline
more completely the City's obligations and the developer's obligations regarding development
within the urban renewal area.
Recommendation
Staff recommends that the Economic Development Committee forward a written
recommendation to the City Council supporting the Moss Green Urban Village Urban Renewal
Plan.
Attachments
Moss Green Urban Renewal Plan
Moss Green
Urban Village
Urban Renewal Plan
CITY OF IOWA CITY, IOWA
APRIL, 2010
Table of Contents
Section 1 - Introduction
Section 2 - District Designation
Section 3 - Base Value
Section 4 - Urban Renewal Plan Objectives
Section 5 - Description of Urban Renewal Area
Section 6 - Type of Urban Renewal Activities
Section 7 - Proposed Projects
Section 8 - Conformance with Land Use Policy and Zoning Ordinance
Section 9 - Relocation of Families
Section 10 - Financial Data
Section 11 - Urban Renewal Plan Amendments
Section 12 - Property Acquisition/Disposition
Section 13 - Consent to Include Agricultural Land
Section 14 - Effective Period
Addendum No.1 - Legal Description
Addendum No.2 - Moss Green Urban Village Urban Renewal Project Area Map
Addendum No.3 - Agricultural Land Consents
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1. Introduction
This Urban Renewal Plan has been developed to help local officials promote economic
development in Iowa City, Iowa. The primary goal of the plan is to stimulate, through
public involvement and commitment, private investment in new commercial and
industrial development.
The goals outlined in this Moss Green Urban Village Urban Renewal Plan include the
following, which are also goals included in the Iowa City Comprehensive Plan - 1997,
as amended:
. Diversify and increase the property tax base by (1) encouraging the retention and
expansion of existing industry and (2) attracting industries that have growth
potential and are compatible with existing businesses;
. Increase employment opportunities consistent with the available labor force;
. Provide and protect areas suitable for future industrial and commercial
development;
. Cooperate with local and regional organizations to promote economic
development within Iowa City;
. Improve the environmental and economic health of the community through the
efficient use of resources; and
. Consider financial incentives and programs to facilitate achieving the above
goals.
In order to make development sites attractive to new and expanding firms,
communities are frequently called upon to provide financial incentives and programs.
Other development sites in the region, which already cater to commercial, office,
research, light production, and assembly uses, make tax increment financing available
to qualifying businesses. As is consistent with the Iowa City Comprehensive Plan, the
City has concluded it is in the interest of its citizens to encourage the development of
commercial, office and research development zoned land in order to provide
competitive development sites for commercial, office, research, light production and/ or
assembly uses. To assist with ensuring that this type of development site is
competitive, the City intends to make available the use of tax increment financing as a
means to finance the construction of some of the necessary public infrastructure
improvements within the Moss Green Urban Village Urban Renewal Plan Area,
referred to hereafter in this Plan as the Urban Renewal Project Area or Area. In
addition, the City may make available the use of tax increment financing to provide
direct grants, loans or rebates for qualifying businesses planning to locate in the Urban
Renewal Project Area.
3
To achieve the primary objectives of this Plan, the City of Iowa City shall undertake the
urban renewal actions as specified in this Urban Renewal Plan, pursuant to the powers
granted to it under Chapters 15A and 403 of the 2009 Code of Iowa, as amended.
2. District Designation
With the adoption of this plan, Iowa City will designate this Urban Renewal Area as an
economic development district that is appropriate for commercial and industrial
development.
3. Base Value
If the Moss Green Urban Village Urban Renewal Area is legally established and debt is
certified prior to December 1, 2010, the taxable valuation within the district as of
January 1,2009 will be considered the "base valuation". If the debt is not certified until
a later date, the "base value" will be the assessed value of the taxable property in the
Urban Renewal Area as of January 1 of the calendar year preceding the calendar year in
which the City first certifies the amount of any debt.
4. Urban Renewal Plan Objectives
The overall goal of the Moss Green Urban Village Urban Renewal Plan is to formulate
and execute a workable program using public and private resources to develop the
Urban Renewal Project Area for uses generally allowed in commercial, office and
research park zones. Renewal activities are designed to provide opportunities,
incentives and sites for commercial and industrial development. Objectives for
development in the Urban Renewal Area include:
. To encourage and support development that will expand the taxable values of
property within the Urban Renewal Project Area;
. To plan for and provide sufficient land for new commercial and industrial
development in a manner that is efficient from the standpoint of providing services;
. To help finance the cost of constructing street and other infrastructure
improvements to support new development;
. To stimulate, through public action and commitment, private investment in new
commercial and industrial development;
. To encourage and support development that will result in job creation;
. To encourage the use of green technologies in infrastructure development, land use
and new buildings;
. To encourage the development of start-up firms and the attraction of new
businesses;
. To provide for the orderly physical and economic growth of the city;
4
. To enhance the availability of sites to accommodate the construction of industrial,
commercial, office, research park and associated uses;
. To assist with the provision of infrastructure to enable competitive land prices and
lease rates and thereby provide a more marketable and attractive investment
climate;
. To make public improvements as deemed necessary by the City to support new
industrial, commercial, office, research park and associated uses; and
. To provide financial incentives and assistance to qualifying businesses.
5. Description of Urban Renewal Area
The legal description of this proposed Urban Renewal Project Area is included in the
Plan as Addendum No.1-Legal Description.
The location and general boundaries of the Moss Green Urban Village Urban Renewal
Plan Area are shown on Addendum No.2 - Location Map: Moss Green Urban Village
Urban Renewal Project Area. This area is approximately 243 acres.
6. Types of Urban Renewal Activities
To meet the objectives of this Urban Renewal Plan and to encourage the development of
the area, the City intends to utilize the powers conferred under Iowa Code Chapters
15A and 403 (2009) and financial incentives, including, but lot limited to, tax increment
financing. Activities may include:
1. To undertake and carry out urban renewal projects though the execution of
contracts and other instruments.
2. To make or have made surveys and plans necessary for the implementation
of the Urban Renewal Plan or specific urban renewal projects.
3. To make loans, forgivable loans, grants, or rebates to private persons or
businesses for economic development purposes on such terms as may be
determined by the Iowa City Council, in its sole discretion.
4. To provide for the installation of infrastructure and roadway improvements.
5. To use any or all other powers granted by the Urban Renewal Act to develop
and provide for improved economic conditions in Iowa City.
6. To encourage the incorporation of energy efficient building techniques such
as those specified in the Iowa Green Building Standards, or those attaining
5
LEED certification, through the use of tax increment financing, in the sole
discretion of the City Council.
7. Proposed Proj eels
Proposed projects involve activities necessary to facilitate growth in the Urban Renewal
Area and provide incentives to encourage new development to locate in the area.
Projects including water, sewer, street and other infrastructure may be constructed. In
addition, the City may consider providing direct or indirect financial incentives to
private persons or businesses as incentives to locate in the Area.
Private Site Improvements
Lot development may include, but is not limited to, design and construction of
buildings and building additions, grading for building construction and amenities;
paving and parking; landscaping; and on-site utilities. Tax increment financing may be
granted to be used by qualifying businesses to finance private site improvements.
Businesses incorporating energy efficient building techniques such as those specified in
the Iowa Green Building Standards, or those attaining LEED certification may be
eligible for additional tax increment financing, in the sole discretion of the City Council.
Public Infrastructure Improvements
Public infrastructure improvements may include, but are not limited to, public streets
and sidewalks, sanitary sewers, storm sewers, water distribution mains and open space
improvements. Tax increment financing may be available to finance the construction of
these improvements, at the City Council's discretion.
Financial Incentives
At the City Council's discretion, tax increment financing may be available for providing
direct grants, loans, or rebates for those qualifying businesses engaged in commercial,
industrial, office, research park and associated use activities allowed in the Urban
Renewal Project Area. The funds from the direct grants, loans, or rebates may be used
for, but are not limited to, financing the public and private site improvements.
Qualifying businesses and improvements shall be determined by the City Council in its
sole discretion.
6
8. Conformance with Land Use Policy and Zoning Ordinance
Comprehensive Plan
The Urban Renewal Project Area is part of the area near the 1-80 interchange with
Highway 1. The Iowa City Comprehensive Plan states that this area...
.. .provides one of the few opportunities for office research park development in
Iowa City. National Computer Systems (now Pearson) (within the North
Corridor Planning District) and ACT (south of 1-80 in the North Corridor
Planning District) are successful examples of this type of development. With the
tone set by these two companies and the advantages of interstate exposure, land
around this interchange should continue to be preserved for office research park
and research development park opportunities.
Iowa City has a general plan for the physical development of the City outlined in both
the Iowa City Zoning Ordinance and the Iowa City Comprehensive Plan - 1997, as
amended. The goals and objectives of this Urban Renewal Plan are consistent with the
goals and land use policy contained in the Zoning Ordinance and Comprehensive Plan,
which were identified and adopted as part of the planning process.
Current Zoning
The Project Area's present zoning designation is ID-ORP, Interim Development - Office
Research Park, and is consistent with this Urban Renewal Plan. The proposed zoning,
whether Office Research Park (ORP) or Research Development Park (RDP), is also
consistent with this Plan.
Current and Proposed Land Uses
The area is comprised of approximately 243 acres of developable land. The proposed
land uses include commercial, industrial, office, research, light production, and/or
assembly purposes, which are consistent with the proposed zoning.
9. Relocation of Families
Though the Moss Green Urban Village Urban Renewal Plan does not anticipate the
need to relocate families, as there is no current residential area within the Plan, in the
event that such needs arise the City will consider provisions for the relocation of persons,
including families, business concerns and others who could be displaced as a result of
improvements to be made in the designated Urban Renewal Project Area.
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10. Financial Data
1.
Constitutional Debt Limit:
$ 136,552,095
2.
Current general obligation debt:
$ 84,995,000
3. Proposed amount of indebtedness to be incurred: A specific amount of tax
increment debt to be incurred (including direct grants, loans, advances,
indebtedness, or bonds) for projects over time has not yet been determined. The
City Council will consider each request for financial assistance or a project
proposal on a case-by-case basis to determine if it is in the City's best interest to
participate. It is estimated that the City's cost for initial anticipated projects
discussed herein will be in the $10 to $15 million range.
11. Urban Renewal Plan Amendments
This Urban Renewal Plan may be amended from time to time to include change in the
area, to add or change land use controls or regulations, to modify goals or types of
renewal activities, or to amend property acquisition and disposition provisions.
If the City of Iowa City desires to amend this Urban Renewal Plan, it may do so after
providing public notice, holding a public hearing on the proposed change, and
undertaking other required actions, all in conformance with applicable state and local
laws.
12. Property Acquisition/Disposition
Other than easements and right-of-ways, no property acquisition by the City is
anticipated.
13. Consents to Include Agricultural Land
As the Moss Green Urban Village Urban Renewal Area contains land that is being used
for agricultural purposes as defined by Iowa Code Section 403.17(3), the property
owners of such land have executed consents to allow the City to include real property
defined as "Agricultural Land" within the Urban Renewal Area. These Consents are
attached as Addendum No.3.
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14. Effective Period
This Urban Renewal Plan will become effective upon its adoption by the City Council of
Iowa City and will remain in effect as a plan until it is repealed by the City Council.
With respect to any property covered by this plan which is included in an ordinance
which designated that property as a tax increment area, the use of incremental property
tax revenues, or the" division of revenue", as those words are used in Chapter 403 of
the Code of Iowa, is limited to twenty (20) years from the calendar year following the
calendar year in which the City first certifies to the County Auditor the amount of any
grants, loans, advances, indebtedness or bonds which qualify for payment from the
incremental property tax revenues attributable to that property. However, the use of
tax increment financing revenues (including the amount of grants, loans, advances,
indebtedness or bonds which qualify for payment for the division of revenue provided
in Section 403.19 of the Code of Iowa) by the City for activities carried out under the
Urban Renewal Plan shall be limited as deemed appropriate by the board and
consistent with all applicable provisions of law.
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Addendum No.1
Legal Description of the
Proposed Urban Renewal Project Area
Consisting of a tract of land described as follows:
MOSS-GREEN URBAN VILLAGE
A part of the subdivision of the Northeast One-Quarter of Section 35, Township 80
North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded
in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson
County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten
(10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight
(8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range
6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres,
more or less; and
All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of
the Southeast Quarter lying North of the Interstate 80 Right-of-Way line and the East
63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80
Right-of-Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth
Principal Meridian, Johnson County, Iowa, being more particularly described as
follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North,
Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa;
THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right-of-Way line
of Interstate 80;
THENCE South 82024'15" West, along the North Right-of-Way line of Interstate 80, a
distance of 646.23 feet;
THENCE continuing west along the North Right-of-Way line of Interstate 80, North
88011'05" West, a distance of 1,731.77 feet;
THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the
Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth
Principal Meridian, Johnson County, Iowa;
THENCE South 89041'57" East, along said North line of the Southeast Quarter of Section
35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County,
Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres,
more or less; and
HILLS BANK & TRUST and NEAL N. LLEWELLYN:
The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80
North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa and that
portion of The Southeast Quarter of the of the Northwest Quarter of Section 36,
Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County,
Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more
or less.
10
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Moss Green Urban Village
Urban Renewal Project Area Map
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Addendum No.3
Property Owners' Consents to Include Agricultural Property
Within Proposed Urban Renewal Project Area
12